About this schedule

Warning:

This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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Amounts to be withheld from payments made weekly, fortnightly, monthly and quarterly, as set out in the relevant PAYG withholding tax table, can be calculated using the formulas and coefficients contained in this schedule.

Can you use a formula?

The formulas comprise linear equations of the form y = ax – b, where:

y is the weekly withholding amount expressed in dollars

x is the number of whole dollars in the weekly earnings plus 99 cents

a and b are the values of the coefficients for each set of formulas for each range of weekly earnings (or, in the case of fortnightly, monthly or quarterly earnings, the weekly equivalent of these amounts).

The formulas relate only to the calculation of withholding amounts before any tax offsets and Medicare levy adjustments are allowed. For instructions on the treatment of tax offsets and Medicare levy adjustments, refer to tax offsets.

Withholding amounts calculated using these formulas may vary slightly to those calculated using the method set out in the footnote to the appropriate PAYG withholding tax table. This applies if earnings exceed $3,275 weekly or $6,550 fortnightly.

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Rounding of withholding amounts

Withholding amounts calculated as a result of applying the above formulas should be rounded to the nearest dollar. Values ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.

Use these rounding rules across all scales except scale 4 (where payee does not provide a TFN). For scale 4, cents are ignored when applying the tax rate to earnings and when withholding amounts are calculated.

What if there are 53 pay periods in a financial year?

In some years, you may pay your payees 53 times instead of the usual 52. As this table is based on 52 pays, the extra pay may result in insufficient amounts being withheld. You should let your payees know when this occurs so if they are concerned about a shortfall, they can ask you to withhold the additional amount in the table below.

Weekly earnings$

Additional withholding $

700 to 1549

3

1,550 to 3,449

4

3,450 and over

9

What if there are 27 pay periods in a financial year?

In some years, you may pay your payees 27 times instead of the usual 26. As this schedule is based on 26 pays, the extra pay may result in insufficient amounts being withheld. You should let payees know when this occurs so if they are concerned about a shortfall, they can ask you to withhold the additional amounts in the table below.

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We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.